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Finance Rates

Discussion in 'Australia & New Zealand' started by Nuclear Fusion, Jun 19, 2019.

  1. djayz

    djayz Member

    Joined:
    Aug 6, 2014
    Messages:
    88
    Location:
    Melbourne
    Is anyone here financing the car even though they have the cash to buy it outright pretty easily? I'm trying to decide if that is a better strategy to buying it outright. Cashflow is not a problem and I will be tax deducting the car partially for work. Paying several thousand dollars interest on a finance plan didn't seem to make sense....BUT there is one reason that I am considering it....Tesla's financial viability. If the unthinkable happens and Tesla folds I could just hand the car back to the lease company in 4 years and wash my hands whereas if I own it outright then it'll be worth nothing...

    What do you guys think? I realise the thread is full of people financing but I'm hoping some objectivity in the recommendations.
     
  2. Grenadine

    Grenadine Member

    Joined:
    Jul 8, 2019
    Messages:
    138
    Location:
    Melbourne, Australia
    yeah I am in the same boat. The interest is 3.89. If I cannot do better than that in investments I am doing something wrong (retain most earning in a tax free way). Possible but (hopefully) not probable. Add in your tax deduction and voila!
     
  3. paulp

    paulp Active Member

    Joined:
    Jul 23, 2015
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    1,812
    Location:
    Adelaide, Australia
    If you are buying it in your business with a high amount of business use then leasing or chatel mortgage makes sense (you’ll need the right product for your hand back theory). This is nicely tax effective. If you are buying it personally with little to no business use, then paying cash makes more sense, but rates are so low that its almost irrelevant. As Grenadine said abov, there is no point breaking a good investment if you can borrow for less.
     
  4. PJF000

    PJF000 Member

    Joined:
    Dec 26, 2015
    Messages:
    487
    Location:
    Australia
    If the comparison rate on the finance is 3.69% (which it probably isn't), then you could get 5.05% in a 12 mth TD with LaTrobe finance - interest paid monthly, calculated daily (1st Mortgage security) which is probably more secure than Tesla if you are worried about that. With the extra return you could use it to insure your vehicle. If you become a Collingwood FC member you can get 5.3% :) Only downside is that the TD is a variable rate and will generally follow the RBA cash rate, however with the last two .25% rate cuts - total .5%, they only reduced the TD rate by .15%.
    It's a no brainer, even if Tesla wasn't a risk.
     
  5. mattclar

    mattclar New Member

    Joined:
    Jul 12, 2019
    Messages:
    4
    Location:
    Melbourne
    It's anyone going with ANZ @3.3%?
    I have the Macquarie quote @ 3.9% also...
    FYI those going with Macquarie (and I presume pepper) I have been advised they are including the CEFC discount in the 3.9% thus how they're getting such low rates!
    Think I'll go with ANZ as I am 75% business use.
     
  6. raynewman

    raynewman Active Member

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    Oct 11, 2014
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    1,303
    Location:
    Brisbane, Australia
    WTF is CEFC?
     
  7. meowsers

    meowsers Member

    Joined:
    Jul 6, 2019
    Messages:
    216
    Location:
    Australia
    CEFC is a slush fund of the Australian Government that promotes clean energy.

    Clean Energy Finance Corp
     
  8. mattclar

    mattclar New Member

    Joined:
    Jul 12, 2019
    Messages:
    4
    Location:
    Melbourne
    They are giving out a credit worth 0.7% P/A. Macquarie and peppers are pocketing this on your behalf and making themselves look good.
    Whereas ANZ are letting you apply it to their normal rate.
     
  9. stedes

    stedes Member

    Joined:
    May 23, 2019
    Messages:
    19
    Location:
    Sydney, NSW
    Hi guys

    Does anyone have direct contact details for the "Tesla person" at Macquarie or Peppers? I'm most likely putting an order in this weekend and would like to get some idea of what paperwork they require as getting stuff from my employer sometimes takes a while.

    Thanks
     
  10. nigwil

    nigwil Member

    Joined:
    Oct 4, 2016
    Messages:
    80
    Location:
    Hobart, Tasmania
    Pepper need two most recent payslips, front and back of drivers license and a privacy form.
     
    • Like x 1
  11. paulp

    paulp Active Member

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    Jul 23, 2015
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    1,812
    Location:
    Adelaide, Australia
    Maquarie dont need a lot. They will send you a form to fill out along with a list. Although I’m self employed, I cant recall any document that would need you to ask your place of employment. Mine was slightly complicated due to the structure of my business, so my accountant had to supply some docs (trust deeds etc).
     
    • Like x 2
  12. lonewolf313

    lonewolf313 Member

    Joined:
    Jun 18, 2014
    Messages:
    202
    Location:
    Sydney Australia
    Went to their website. Saw a lot of 1 star ratings from customers
     
  13. meowsers

    meowsers Member

    Joined:
    Jul 6, 2019
    Messages:
    216
    Location:
    Australia
    Yeah pepper scared me away by not answering my emails, and not calling me back. I was like hmm if it's this bad before they got me to sign on the dotted line, imagine when they are servicing the loan.
     
  14. youmi

    youmi Member

    Joined:
    Jul 21, 2019
    Messages:
    16
    Location:
    Australia
    How bad can it be if you’re paying them money. As long as you’ve got an account and a BSB and are making repayments on time, I don’t think you’ll have a lot to deal with them on?
     
    • Like x 1

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